In the past 30 years, with the development of computer technology, the trading mode of option market has gradually changed from the initial open outcry to electronic. During this period, the turnover scale of American options market has been increasing, from 2.8 million lots per day in 2000 to 20 12 years170,000 lots. Among them, the average daily turnover of CBOE, which has the largest market share in the United States, increased from 6.5438+0.3 million lots to 4.8 million lots. According to trading products, business models and regulators, the American derivatives market can be divided into three categories: futures market, options market and OTC market. The three markets have their own characteristics and similarities.
1. Trading products
The futures market trades standardized futures contracts and futures option contracts. The products traded include commodities, debts, foreign exchange, indexes and interest rates. Product innovation needs the approval of regulatory authorities. The options market trades standardized options contracts, including stocks, foreign exchange, ETFs and bonds, and product innovation also needs the approval of regulatory agencies. The OTC market trades personalized products in the form of forwards, swaps and options, including futures and options markets and other financial products that are not included.
2. Liquidation and income
The futures market is cleared by the exchange itself, and the trading positions are not interchangeable. The main income comes from clearing fees, transaction fees, market data and technical support. Option clearing company (OCC) is responsible for the settlement of the option market. Most trading positions are interchangeable, and the main income comes from channel fees, transaction fees, market data and technical support. OTC market clearing is completed by both parties, and the product positions are not interchangeable, and the main income comes from traders and trade financing.
3. Regulatory agencies
The futures market is supervised by CFTC, and the exchange can adjust the details before filing, and the management method is relatively loose. The options market is supervised by the SEC, and any adjustment of the exchange requires declare in advance, which is very strict in management. The OTC market was not regulated by the market at first, but the Franklin Act changed the status quo, and the SEC regulation has begun to intervene.
On the whole, from the point of view of exchange supervision, the control power of SEC is much greater than that of CFTC, but in terms of product differentiation, many trading targets still interact in different markets, such as commodities, foreign exchange, interest rates and so on. There are both futures and corresponding options, and the price correlation is very high.
The above-mentioned American futures market and options market can also be collectively referred to as the exchange market and the corresponding OTC market. These two markets are important components of global risk transfer interdependence. The on-site market often has an advantage in transaction volume, while the off-site market has an advantage in transaction amount. Taking the statistical data of 20 10 as an example, over-the-counter transactions account for 89% of global derivatives transactions, while on-site transactions only account for 1 1%. In terms of volume, over-the-counter transactions accounted for 45% and on-site transactions accounted for 55%.
The performance of the two trading markets inside and outside the market in a specific asset class can be further distinguished. Taking the statistical data of 2009 as an example, in terms of transaction amount, the on-market transactions of stock-related derivatives account for 5 1%, and the off-market transactions account for 49%; Commodity derivatives account for 20% of on-site transactions and 80% of off-site transactions; Interest rate derivatives account for 12% of on-exchange transactions and 88% of off-exchange transactions; Foreign exchange derivatives account for 1% of on-site transactions and 99% of off-site transactions; The trading situation of credit default derivatives is basically the same as that of foreign exchange.
In terms of trading volume, on-site trading of stock-related derivatives accounted for 68%, and over-the-counter trading accounted for 32%; Commodity derivatives account for 44% of on-site transactions and 56% of off-site transactions; Interest rate derivatives account for 70% of on-site transactions and 30% of off-site transactions; Foreign exchange derivatives account for 5% on-site transactions and 95% off-site transactions; Credit default derivatives account for less than 1% on the floor and almost 100% off the floor.
Through comparison, we can find that although OTC has absolute advantages in transaction amount and volume, in terms of stock derivatives, the floor trading market has obvious advantages in transaction amount and volume.
One of the important reasons for the success of the American floor trading market is the rapid development of the options market, in which the trading scale of stocks and index options occupies absolute weight. Driven by six factors, such as multiple charging standards, competitive quotation and liquidity, cutting-edge IT technology, rich trading products, diversity of matching mechanisms, and emphasis on market promotion and investor education, the product scale of American options market is ahead of the global market, with more than 3,000 stock options, more than 50 index options and more than 250 ETF options. The contract period spans weeks, months, quarters and long-term (3 years).
At present, the competition pattern of American option market consists of nine option exchanges, belonging to six holding groups. CBOE and CBOE, two options exchanges controlled by CBOE Group, have a market share of 29.9%. NYSE Euronext Group holds two options exchanges, NYSEAMEX and NYSEARCA, with a market share of 24%. Nasdaq OMX Group holds two options exchanges, nasdakomx (Options) and nasdakomx(PHLX), which have 22% market share and are the biggest competitors of Chicago Board Options Exchange, because some transactions of NYSE Euronext have fulfilled the obligations entrusted by the regulatory authorities and are unprofitable. Deutsche Securities Derivatives Exchange holds ISE options exchange with a market share of 16.7%. TMX Group's options exchange has a market share of 3.9%. Finally, the market share of BATS Options Exchange is 2.9%.
Different from China's futures market, the nine options exchanges in the United States basically overlap in the types of products that can be traded. However, due to the existence of different matching mechanisms and different charging standards, options exchanges can be divided into three categories, and the competition between them is very fierce.
1. Traditional market trading mode
At present, CBOE, NYSEAMEX and BOX all adopt this method. Its order matching mechanism follows the principle of customer priority and market makers' distribution according to work. In terms of fees, most customers charge market makers free of charge, and the fees have upper and lower limits.
2. Comprehensive market transaction model
At present, it is adopted by CBOE2, NASDAQPHLX and ISE. The principle of its order matching mechanism is to increase the price time priority rule on the basis of the traditional trading mode, give priority to customers, and the market makers who provide quotation obligations enjoy certain rights. In terms of fees, market makers and acquirers pay, and the exchange retains the difference income.
3. Price-time priority trading model
At present, it is adopted by NYSEARCA, BATS and NASDAQOPTIONS. Its order matching mechanism follows the principle of price and time priority, customers have no transaction priority, and market makers have no power to allocate orders. The charging is basically consistent with the comprehensive market trading model.